AMSA to pay CompCom fine in instalments


AMSA to pay CompCom fine in instalments

Published Date: 2017-12-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

AMSA to pay CompCom fine in instalments

The steelmaker has renegotiated its payment schedule due to its tough trading conditions

ArcelorMittal South Africa has made its first payment towards a mammoth R1.5 billion fine imposed on it by the Competition Commission in 2016 for colluding with steel and scrap metal cartels to fix prices. The steelmaker was given five years to pay the penalty - in instalments of no less than R300 million a year.

However, in a statement yesterday AMSA said it had reached an agreement with the Commission to divide the 2017 payment into three separate tranches of R100 million each. The deal is subject to confirmation by the Competition Tribunal. AMSA said the Commission had taken its financial position into account, with tough trading conditions weighing on margins in the global and local steel industries. It said the revised payment terms only apply to the first year of the agreement. It's already paid R100 million and will make two more payments in April and July. After that, the instalments will revert to the original conditions imposed by the Commission.

Related article: ArcelorMittal calls for more safeguards to protect steel industry

At the time, the R1.5 billion fine was the biggest ever handed out and followed a lengthy investigation into long and flat sheet steel producers in the country following complaints about the exorbitant prices of steel products. Other companies found to have participated in price fixing, preferential discounts and information sharing included Cape Town Iron and Steel Works, Scaw and Cape Gate.

The company's shares shed 4.5% to R3.62.

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